Law of Contract - Case Study Example

The requirement for the program is usually postpones or suspended for a limited period of time, and may require notice in order to rely on the contractual clause."1 Whether the bad weather can classified as force majeure making the delay acceptable is dependent upon the force majeure clause in the building contract that the parties entered into. Said clause should contain: According to the case of Paradine v Jane3, it is necessary to adhere to the strict and literal application of contractual terms.

In that case the defendant refused to pay rent since he was no longer in possession of the land. The defendant was made to pay rent since the court ruled that there was no express or implied terms within their contract to grant a reprieve in such circumstances. In the event that the agreement between the parties does not clearly state or cover the issues at hand, the basic agreement contained in UK law regarding Force Majeure is found in the Standard Building Contract or SBC Item 13. The SBC states that a contractor is entitled to an extension of time in cases of "other relevant events such as exceptionally adverse weather conditions, specified perils, civil commotion or terrorism, strike and the execution by the UK government of any statutory power which directly affects the execution of the works after the base date.

"4 The performance of the obligation is deemed suspended until the passing of the force majeure and thus it will create the effect of extending the time allotted to finish obligation as discussed in the case of Tenneco Canada Inc. V British Columbia Hydro and Power Authority.5 Accordingly if the workers strike, a circumstance considered by the court as a force majeure, caused the direct cessation of the Tenneco's electric supply then Tenneco would be granted a reprieve from payment of the monthly demand charge on top of the electricity bill.

But since the stoppage of work caused by the strike did not prevent Tenneco from using the electricity hence he must pay the consequent monthly demand charge. The obligation to pay was not deemed suspended. In the case of Snograss the inclement weather condition caused work stoppages and delays, hence the period to complete the obligation must be suspended pending the passage of the force majeure.This being the rule of law, Snodgrass contention is valid. The reason of force majeure causing the delay is valid.

The additional time of 10 days it took Snodgrass to finish the first fifty bungalows is valid and reasonable. Hence the breach of contract is excused and the Newchestham Borough Council cannot terminate the same nor is it entitled to